PROJECT REPORT

Of

BOUFFANT CAPS
PURPOSE OF THE DOCUMENT

This particular pre-feasibility is regarding Bouffant Caps Manufacturing unit.

The objective of the pre-feasibility report is primarily to facilitate potential entrepreneurs in project
identification for investment and in order to serve his objective; the document covers various aspects
of the project concept development, start-up, marketing, finance and management.

[We can modify the project capacity and project cost as per your requirement. We can also prepare
project report on any subject as per your requirement.]

Lucknow Office: Sidhivinayak Building ,

27/1/B, Gokhlley Marg, Lucknow-226001

Delhi Office : Multi Disciplinary Training

Centre, Gandhi Darshan Rajghat,
New Delhi 110002

Email : info@udyami.org.in
Contact : +91 7526000333, 444, 555
 PROJECT AT A GLANCE

1 Name of the Entreprenuer xxxxxxxxxx

2 Constitution (legal Status) xxxxxxxxxx

3 Father / Spouse Name xxxxxxxxxxxx

4 Unit Address : xxxxxxxxxxxxxxxxxxxxxx

District : xxxxxxx
Pin: xxxxxxx State: xxxxx
Mobile xxxxxxx

5 Product and By Product : BOUFFANT CAPS

6 Name of the project / business activ BOUFFANT CAPS MANUFACTURING UNIT

7 Cost of Project : Rs.14.05 Lakhs

8 Means of Finance
Term Loan Rs.9.65 Lakhs
Own Capital Rs.1.41 Lakhs
Working Capital Rs.3 Lakhs

9 Debt Service Coverage Ratio : 2.49

10 Pay Back Period : 5 Years

11 Project Implementation Period : 5-6 Months

12 Break Even Point : 55%

13 Employment : 11 Persons

14 Power Requirement : 7.00 KW

15 Major Raw materials : P.P.Spun Bond Non Woven Fabric, Inner Elastic

16 Estimated Annual Sales Turnov : 55.14 Lakhs

17 Detailed Cost of Project & Means of Finance

COST OF PROJECT (Rs. In Lakhs)

Particulars Amount
Land Own/Rented
Plant & Machinery 10.27
Miss Assets 0.25
Furniture & Fixtures 0.20
Working Capital 3.33
Total 14.05

MEANS OF FINANCE
Particulars Amount
Own Contribution 1.41
Working Capital(Finance) 3.00
Term Loan 9.65
Total 14.05
 PROJECT REPORT
ON

BOUFFANT CAPS

Bouffant caps differ from surgical caps and are usually preferred for hygiene and
safety purposes to minimize contamination. Bouffant caps are designed to provide
effective protection to hair from fluids and other contaminants. Standard bouffant
caps are made up of non woven polypropylene material and available in one-layer
breathable spunbond fabric, as well as three-layer SMS (spunbond/meltblown/
spunbond) fabric. Foodservice outlets and cleanroom manufacturing facilities are
the prominent end-users of bouffant caps, followed by the healthcare industry. The
growing concern for hygiene at work is anticipated to boost the demand for
disposable bouffant caps throughout the forecast period. Bouffant caps are
attributed to be one of the prominent segments in the clean room consumables
market. Bouffant cap colors are standardized by different authorities as per the area
of application.

USES & MARKET POTENTIAL

Buoffant cap a loose cap, so called because of its puffy shape, typically secured
round the head with an elastic, and frequently used in cleanrooms, food service,
surgeries, shower and other settings to contain loose hair.

The demand for bouffant caps is attributed to boost in the next 10 years owing to
their adoption in surgical applications instead of skull caps. In the United States,
skull caps were used in surgery by male and female personnel to avoid
contamination in the surgical rooms. Skull caps are non-elastic and cover only the
upper part of the head.
The exposed hair can lead to severe infections to the patient. Approximately 300,000 surgical
site infections (SSIs) occur each year, accounting for about one-third of hospital-acquired
infections in the U.S. To overcome this problem, the Association of preoperative Registered
Nurses (AORN) authoritatively recommended that bouffant caps be worn by all the team
members involved in surgeries.

The growing number of foodservice outlets, industrial food processing units, and
electronic assembly plants are the key drivers for increasing the demand for
bouffant caps at different countries. People highly prefer a hygienic environment at
foodservice outlets, which is expected to increase the usage of foodservice bouffant
caps.

RAW MATERIAL REQUIREMENT

Required material

For 18” Bouffant cap

1.P.P.Spun Bond Non Woven Fabric (12 Gsm) =130 Rs per Kg

2.Inner elastic =0.30 Rs per meter

One Pc Bouffant Cap Weight

Non woven fabric 1.73 Grams
Elastic 0.57 Gram (20cm)
Total weight 2.30 Gram

MANUFACTURING PROCESS

Non-woven bouffant cap production machine is fully automatic equipment, uses

ultrasonic bonding technique to replace the traditional manual sewing with
mechatronics automatic control. The machine can produce a variety of sizes of the
cap, such as 18-inch /19-inch/21- inch/24-inch.
Bouffant cap is made of P.P.Spun Bond Non Woven Fabric 12Gsm
material used polypropylene 12-16 grams /sq. meters gsm in density These are
iintended to repel the water , blood and body fluids, hairs . . On the machine the role
of required size of are loaded And this passes through the machine where stitch
the bouffant cap and sealed and fixed the elastic by a machine then cut in to
required sizes. Then packed and sterile and the product is ready to market.

Fabric Slitting Fabric fed to Folding

Procurment Bouffant cap
production
machine

Storage and Packing

Despatch
 PROJECT COMPONENTS

Land /Civil Work

Amount
Sl. Description No. Area
(Rs.)
i) Land 1,500 sq.ft.
Rented Rs20,000/-PM
ii) Built-up area for office stores and
1,000 sq.ft.
shed etc.
We have not considered the cost of Land purchase & building civil work in the project. It is
assumed that land & building will be on rent and approximate rent of the same will be Rs
20,000 per month

Plant and Machinery

Rs in lac
Sr
Particulars Quantity Rate Total Value
No

Bouffant Cap machine cap 60 to

1 120 mask/min Single phase 1 8.50 8.50
3KW
2 Stabilser 0.10 0.10
3 Packing/Sealing Machine 0.10 0.10

Cost of Plant & Machinery 8.70

GST 1.57

Total Cost 10.27

Power Requirement

Power requirement for the unit will be: 7 KW (approx.)

Manpower Requirement

The unit shall require 1 skilled and 3 unskilled persons, 2 helper and 2 Supervisor
and accountant.

Utilities

1 Electricity PA ( 7KW *10*12*7*25) 1,47,000

FINANCIAL
ASPECTS
PROJECTED BALANCE SHEET (in Lacs)

PARTICULARS 1st year 2nd year 3rd year 4th year 5th year
Liabilities
Capital
Opening Balance 2.12 3.53 5.01 6.77
Add:- Own Capital 1.41
Add:- Retained Profit 1.62 3.56 4.18 5.76 6.88
Less:- Drawings 0.90 2.15 2.70 4.00 5.20

Closing Balance 2.12 3.53 5.01 6.77 8.45

Term Loan 8.58 6.43 4.29 2.14 -
Working Capital Limit 3.00 3.00 3.00 3.00 3.00
Sundry Creditors 2.37 2.64 2.93 3.33 3.76
Provisions & Other Liabilities 0.10 0.20 0.24 0.29 0.35
TOTAL : 16.16 15.80 15.47 15.53 15.55
Assets
Fixed Assets ( Gross) 10.72 10.72 10.72 10.72 10.72
Gross Depriciation 1.60 2.96 4.11 5.10 5.93
Net Fixed Assets 9.12 7.76 6.61 5.62 4.79

Current Assets
Sundry Debtors 2.94 3.41 3.81 4.23 4.76
Stock in Hand 3.27 3.66 4.06 4.57 5.15
Cash and Bank 0.83 0.97 0.98 1.11 0.86
TOTAL : 16.16 15.80 15.47 15.53 15.55
PROJECTED CASH FLOW STATEMENT (in Lacs)

PARTICULARS 1st year 2nd year 3rd year 4th year 5th year
SOURCES OF FUND
Own Margin 1.41
Net Profit 1.62 3.56 4.18 5.96 7.37
Depriciation & Exp. W/off 1.60 1.36 1.16 0.98 0.84
Increase in Cash Credit 3.00 - - - -
Increase In Term Loan 9.65 - - - -
Increase in Creditors 2.37 0.27 0.29 0.40 0.43
Increase in Provisions & Other liabilities 0.10 0.10 0.04 0.05 0.06

TOTAL : 19.73 5.29 5.67 7.39 8.70

APPLICATION OF FUND
Increase in Fixed Assets 10.72
Increase in Stock 3.27 0.38 0.40 0.51 0.58
Increase in Debtors 2.94 0.47 0.40 0.42 0.53
Repayment of Term Loan 1.07 2.14 2.14 2.14 2.14

Drawings 0.90 2.15 2.70 4.00 5.20

Taxation - - - 0.20 0.49
TOTAL : 18.91 5.15 5.65 7.27 8.95

Opening Cash & Bank Balance - 0.83 0.97 0.98 1.11

Add : Surplus 0.83 0.14 0.02 0.12 -0.25
Closing Cash & Bank Balance 0.83 0.97 0.98 1.11 0.86
PROJECTED PROFITABILITY STATEMENT (in Lacs)

PARTICULARS 1st year 2nd year 3rd year 4th year 5th year
Capacity Utilisation % 65% 70% 75% 80% 85%
SALES
Gross Revenue
- -
Sale of Bouffant Cap 55.14 64.00 71.50 79.39 89.33
Total 55.14 64.00 71.50 79.39 89.33
COST OF SALES
Raw Material Cost of Bouffant Cap 35.49 39.59 43.88 49.92 56.36
Electricity Expenses 1.47 1.62 1.78 1.96 2.15
Depreciation 1.60 1.36 1.16 0.98 0.84
Wages & labour 4.08 4.69 5.40 6.21 7.14
Repair & maintenance 0.66 1.15 1.29 1.27 1.34
Consumables 0.61 0.70 1.14 0.87 0.98
Packaging Cost 1.10 1.28 1.43 0.95 1.07
Cost of Production 45.01 50.39 56.07 62.16 69.87
Add: Opening Stock - 1.50 1.68 1.87 2.07
Less: Closing Stock 1.50 1.68 1.87 2.07 2.33
Cost of Sales 43.51 50.21 55.88 61.96 69.62
GROSS PROFIT 11.63 13.79 15.63 17.44 19.71
Salary to Staff 4.68 5.15 6.18 6.80 7.47
Interest on Term Loan 0.95 0.84 0.60 0.36 0.13
Interest on working Capital 0.33 0.33 0.33 0.33 0.33
Rent 2.40 2.64 2.90 3.19 3.51
Selling & Administration Expenses 1.65 1.28 1.43 0.79 0.89
TOTAL 10.01 10.23 11.44 11.48 12.34
NET PROFIT 1.62 3.56 4.18 5.96 7.37
Taxation 0.20 0.49
PROFIT (After Tax) 1.62 3.56 4.18 5.76 6.88
CALCULATION OF D.S.C.R

PARTICULARS 1st year 2nd year 3rd year 4th year 5th year

CASH ACCRUALS 3.21 4.92 5.34 6.74 7.72

Interest on Term Loan 0.95 0.84 0.60 0.36 0.13
Total 4.16 5.75 5.94 7.11 7.84

REPAYMENT
Instalment of Term Loan 1.07 2.14 2.14 2.14 2.14
Interest on Term Loan 0.95 0.84 0.60 0.36 0.13

Total 2.02 2.98 2.74 2.51 2.27

DEBT SERVICE COVERAGE RATIO 2.06 1.93 2.17 2.83 3.45

AVERAGE D.S.C.R. 2.49
COMPUTATION OF CLOSING STOCK & WORKING CAPITAL (in Lacs)
PARTICULARS 1st year 2nd year 3rd year 4th year 5th year
Finished Goods
(10 Days) 1.50 1.68 1.87 2.07 2.33
Raw Material
(15 Days) 1.77 1.98 2.19 2.50 2.82
Closing Stock 3.27 3.66 4.06 4.57 5.15

COMPUTATION OF WORKING CAPITAL REQUIREMENT

TRADITIONAL METHOD (in Lacs)
Particulars Amount Own Margin Bank Finance
Finished Goods & Raw Material 3.27
Less : Creditors 2.37
Paid stock 0.91 10% 0.09 90% 0.82
Sundry Debtors 2.94 10% 0.29 90% 2.65
3.85 0.38 3.46
MPBF 3.46
WORKING CAPITAL LIMIT DEMAND ( from Bank) 3.00
 REPAYMENT SCHEDULE OF TERM LOAN
Interest 11.00%
Closing
Year Particulars Amount Addition Total Interest Repayment Balance
ist Opening Balance -
1st month 9.65 9.65 - - 9.65
2nd month 9.65 - 9.65 0.09 - 9.65
3rd month 9.65 - 9.65 0.09 - 9.65
4th month 9.65 - 9.65 0.09 - 9.65
5th month 9.65 - 9.65 0.09 - 9.65
6th month 9.65 - 9.65 0.09 - 9.65
7th month 9.65 - 9.65 0.09 0.18 9.47
8th month 9.47 - 9.47 0.09 0.18 9.29
9th month 9.29 - 9.29 0.09 0.18 9.11
10th month 9.11 - 9.11 0.08 0.18 8.93
11th month 8.93 - 8.93 0.08 0.18 8.75
12th month 8.75 - 8.75 0.08 0.18 8.58
0.95 1.07
2nd Opening Balance
1st month 8.58 - 8.58 0.08 0.18 8.40
2nd month 8.40 - 8.40 0.08 0.18 8.22
3rd month 8.22 - 8.22 0.08 0.18 8.04
4th month 8.04 - 8.04 0.07 0.18 7.86
5th month 7.86 - 7.86 0.07 0.18 7.68
6th month 7.68 - 7.68 0.07 0.18 7.50
7th month 7.50 - 7.50 0.07 0.18 7.33
8th month 7.33 - 7.33 0.07 0.18 7.15
9th month 7.15 - 7.15 0.07 0.18 6.97
10th month 6.97 - 6.97 0.06 0.18 6.79
11th month 6.79 - 6.79 0.06 0.18 6.61
12th month 6.61 - 6.61 0.06 0.18 6.43
0.84 2.14
3rd Opening Balance
1st month 6.43 - 6.43 0.06 0.18 6.25
2nd month 6.25 - 6.25 0.06 0.18 6.07
3rd month 6.07 - 6.07 0.06 0.18 5.90
4th month 5.90 - 5.90 0.05 0.18 5.72
5th month 5.72 - 5.72 0.05 0.18 5.54
6th month 5.54 - 5.54 0.05 0.18 5.36
7th month 5.36 - 5.36 0.05 0.18 5.18
8th month 5.18 - 5.18 0.05 0.18 5.00
9th month 5.00 - 5.00 0.05 0.18 4.82
10th month 4.82 - 4.82 0.04 0.18 4.65
11th month 4.65 - 4.65 0.04 0.18 4.47
12th month 4.47 - 4.47 0.04 0.18 4.29
 0.60 2.14
4th Opening Balance
1st month 4.29 - 4.29 0.04 0.18 4.11
2nd month 4.11 - 4.11 0.04 0.18 3.93
3rd month 3.93 - 3.93 0.04 0.18 3.75
4th month 3.75 - 3.75 0.03 0.18 3.57
5th month 3.57 - 3.57 0.03 0.18 3.39
6th month 3.39 - 3.39 0.03 0.18 3.22
7th month 3.22 - 3.22 0.03 0.18 3.04
8th month 3.04 - 3.04 0.03 0.18 2.86
9th month 2.86 - 2.86 0.03 0.18 2.68
10th month 2.68 - 2.68 0.02 0.18 2.50
11th month 2.50 - 2.50 0.02 0.18 2.32
12th month 2.32 - 2.32 0.02 0.18 2.14
0.36 2.14
5th Opening Balance
1st month 2.14 - 2.14 0.02 0.18 1.97
2nd month 1.97 - 1.97 0.02 0.18 1.79
3rd month 1.79 - 1.79 0.02 0.18 1.61
4th month 1.61 - 1.61 0.01 0.18 1.43
5th month 1.43 - 1.43 0.01 0.18 1.25
6th month 1.25 - 1.25 0.01 0.18 1.07
7th month 1.07 - 1.07 0.01 0.18 0.89
8th month 0.89 - 0.89 0.01 0.18 0.71
9th month 0.71 - 0.71 0.01 0.18 0.54
10th month 0.54 - 0.54 0.00 0.18 0.36
11th month 0.36 - 0.36 0.00 0.18 0.18
12th month 0.18 - 0.18 0.00 0.18 -
0.13 2.14
DOOR TO DOOR 60 MONTHS
MORATORIUM PERIOD 6 MONTHS
REPAYMENT PERIOD 54 MONTHS
Assumptions:

1. Production Capacity of a Bouffant Caps M a n u f ac t u r i ng unit is taken at 650

Packets per day. First year, Capacity has been taken @ 65%.

2. Working shift of 10 hours per day has been considered.

3. Raw Material stock and Finished goods closing stock has been taken for
1 0 - 15 days.

4. Credit period to Sundry Debtors has been given for 15 days.

5. Credit period by the Sundry Creditors has been provided for 15 days.

6. Depreciation and Income tax has been taken as per the Income tax Act,1961.

7. Interest on working Capital Loan and Term loan has been taken at 11%.

8. Salary and wages rates are taken as per the Current Market Scenario.

9. Power Consumption has been taken at 7 KW.

10. Selling Prices & Raw material costing has been increased by 3% & 2%
respectively in the subsequent years.
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